Besides tax savings, in most areas you can expect some in crease (appreciation) in the value of your home: an additional return on our investment, known as equity buildup. Price trends in real estate vary with locale; brokers can estimate what might happen in your area over the next few years based on their local experience and observations. Equity represents the amount you’d have if you sold your home and paid off any liens (financial claims) against it—usually the ortgage and any past due taxes. Put in the simplest of terms, if you buy a $180,000 house with $25,000 down and a $155,000 mortgage, your equity the day after you move in is $25,000. Equity is the money you have invested in the house—it’s like money in the bank. |
